In this morning’s bitcoin price watch piece we highlighted the levels that we were keeping an eye on throughout today’s European session. Action has now matured throughout the day and – at a time when global markets are breaking to the downside – there has been plenty of volatility in the bitcoin price. As we head into a fresh Asian session, what are the levels we are watching tonight, and where will we be looking to get in and out of the markets according to our intraday strategy if we get a repeat of European volatility? Take a quick look at the chart.
As the chart shows, action today has mirrored that of other financial assets and trended primarily to the downside. Daily lows at 214.05 give us a nice parameter to watch on the bearish side of things, and serves as in term support for this evening. Looking the other way, in term resistance sits at 223.57. These are going to be the levels we watch moving forward.
If the downside momentum continues, we are going to look at a short entry towards a medium term downside target of 210 flat. A stop loss on this one somewhere around 215.5 should keep the trade attractive from a risk management perspective.
If we get an upside correction, we will be looking at a long entry towards an initial target of 229.46. With about six dollars worth or reward available here, a stop loss around 220 flat maintains two to one while leaving us enough room to avoid a chop out in the event that we return to trade within the range medium term.
Charts courtesy of Trading View